Ask Orange County Business Attorneys About the Documents Your Company Needs
November 8, 2016
Many entrepreneurs have such a single-minded focus on getting their idea into production that they fail to build a solid legal foundation for their business. This is a costly mistake, especially for a fledgling company with limited capital. As Orange County business attorneys, Fitzgerald Yap Kreditor are frequently asked to draft legal documents that protect the company, its founders, and other interested parties.
Several legal documents are necessary when starting a business. The first that should be drafted is the incorporating document that is filed with the relevant state’s agency, which may be Articles of Incorporation for a corporation or Articles of Organization for a limited liability company. If you rely on the default option of sole proprietorship, you could be stuck with an excessively expensive choice. More than one entrepreneur has gone this route, only to be hit with enormous tax bills and costly personal liabilities. Drafting Articles of Incorporation or Organization, and seeing that all necessary paperwork is filed with the appropriate Secretaries of State and other regulatory agencies, is second nature for an experienced Orange County business attorney.
The second document to prepare is either an operating agreement, bylaws, or similar governing document depending on whether you choose a corporation, limited liability company, or some other form of entity. This governing document is enormously important throughout the lifetime of the business, because it outlines the relationship between all of the parties involved whether they are founders or investors, and also includes clauses dealing with conflict resolution. This way, if the partners or investors have a dispute, agreed-upon methods of resolution will be readily available.
It is also important to put documents in place which ensure that the company owns the intellectual property it’s using. First and foremost, an assignment that transfers ownership of the invention or process that forms the basis of the venture is necessary. Even if the business owner invented the product, it may make legal sense to assign ownership rights in the invention to the company. Many venture capital firms and investors want ownership to be clear before they put their money into the company.
Non-disclosure and non-compete agreements may also prove to be indispensable. This keeps the company’s proprietary information confidential when an employee someday becomes a former employee.
The Orange County business attorneys at Fitzgerald Yap Kreditor have helped many entrepreneurs draft essential legal documents that get their businesses started off on the right foot. With our experience and legal knowledge, we can help protect personal assets, limit tax liability, and ensure the protection of valuable proprietary information. Call (949) 788-8900 to learn more.
